Builder confidence declined eight points in November, dropping to a level of 60 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI).
The fall was largely the result of growing affordability concerns in the housing market, according NAHB.
“For the past several years, shortages of labor and lots, along with rising regulatory costs, have led to a slow recovery in single-family construction,” NAHB Chief Economist Robert Dietz said in a statement. “While home price growth accommodated increasing construction costs during this period, rising mortgage interest rates in recent months, coupled with the cumulative run-up pricing, has caused housing demand to stall.”
The November HMI scores fell two points in the Northeast (58); one point in the Midwest (57); two points in the South (68); and three points in the West (71).
